Kubota will increase its annual production capacity of industrial diesel engines in Thailand from 120,000 to 160,000 units. The company is adding assembly and machining lines to its existing factory, which is expected to be fully operational by 2026. The investment is estimated to be several billion yen.

Japan, 4 September 2024, Kubota announced a significant investment to boost production of 25-74 horsepower diesel engines in Thailand, catering to growing global demand for its agricultural and construction machinery as well as other industrial applications.

The expansion will be carried out by Kubota Engine Thailand, a company established in 2011 in Chachoengsao Province. The factory, with an approximately 35,000 square meters building area, will produce 1.5-2.4 liter engines, Kubota's flagship model, for use in tractors, mini backhoes, and other construction machinery.

Kubota has established a production system similar to its Tsukuba Factory in Ibaraki Prefecture. Toshiyuki Taneda, a Kubota executive, said, "Being able to purchase from both Japan and Thailand offers customers a risk hedge, and we are promoting multi-location of bases."

According to the Japan Land Engine Manufacturers Association, domestic and overseas production of industrial diesel engines by Japanese manufacturers is expected to decline below 2 million units in fiscal 2024 for the first time in four years. However, it has remained at 1.5 million to 2 million units for the past decade.

Kubota holds the top global market share for industrial engines under 100 horsepower, with external sales accounting for about 60% of total sales. Even with the trend towards carbon neutrality, the company believes that demand for diesel engines will persist. Kubota will continue to develop electronically controlled engines, hybrids, hydrogen, and other technologies while improving fuel efficiency.

Industrial machinery, such as agricultural and construction equipment, is growing, particularly in overseas markets. Kubota is investing 28 billion yen in the Sakai Plant and 18.6 billion yen in the Okajima Business Center to strengthen production and research and development.

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Source: Nikkan Kogyo Shimbun